Investing in your future is always a good idea, and a skilled investor understands the importance of both long-term and short-term investment options. By choosing the right investment options you can maximize your gains and meet the financial goals that you have set for yourself. The term insurance plan that you take is also important in determining your family’s financial wellbeing, especially in case of any unfortunate events. Here are some of the best short-term investment options that you can include in your portfolio for some great rewards and benefits.
Recurring Deposits
Also commonly called RD, it is one of the most common short-term investment options opted by many in India. You can open an RD in any bank in the country. Until an RD is matured, you can receive fixed interest. To open an RD account, you do not need to visit a bank. You can do it through your net banking account or the app of your bank. All that you need to do is to choose the amount that you intend to save every month and mention the specific tenure. The rate of return that you will receive will be between 4% to 6% per annum. The duration of an RD account is 6 months to 10 years.
Fixed Deposits
You will find most of the people calling it an FD. It is also offered by the banks; therefore, one of the most common short-term investment options taken by people. The tenure of this account is from 7 days to 10 years. The rate of return is fixed and you can withdraw the amount by paying a small penalty. The rate of return is 2.5% to 5.5% per annum.
Debt Mutual Funds
This is one of the most sought-after short-term investment options for its high rate of return. The money you put in this is invested in debt instruments including commercial papers, government bonds, corporate bonds, treasury bills, etc. This is one of the best short-term options for people who do not want to take any risk in their process of money-making. The rate of return is 8% to 11% per annum.
SIP in Equity Mutual Funds
SIP is usually a popular option for long-term investment. However, you can also use it to get better returns in a shorter duration. You can invest your money in a SIP for 1 year and up to 5 years. However, if you want a huge return in a shorter period, you can start it in a large-cap mutual fund. The rate of return is 8% to 15% per annum.
Stock Market
If you can take risks without getting stressed, this is the best option for you. With a rate of return of 10% to 100% per annum, you can actually make your investment double. You need to spot the right stocks and invest your hard-earned money. However, you must be aware of the fact that there are fair chances that you may lose all your money if you choose the wrong stocks. The duration of this investment in the stock market is 1 month to 5 years.
Treasury Securities
This is totally safe as it is backed by the Government of India. As you invest your money into it, you can get high liquidity, safe capital, and good returns. You can keep your assets in a safer place. However, you need to know that this provides lower returns than debt funds. The duration of this is 91 days to 1 year. The rate of return is 7.8% on average.
If you want to find more short-term investments options that provide a high return, you can visit the website of IIFL. You can compare all the available options and take your call accordingly.
